Difference between survey and valuation?

katty2010

I know this may sound like a dumb question for some. Getting a mortgage at the mo and a valuator is going in which the lender is paying for. The only fees we have to pay is a £300 arrangement fee and £35 ETF. (+ solicitors and broker fee).

My question is, is that a surveyor? what is the difference? a surveyor has not been mentioned at all, is this just a different name for a valuator? will i need to get a survey done as well as this valuation?

Help please

hcb42

It will just be a basic valuation, i.e. is their money safe.

Most people go for a homebuyer report. Were you not offered this?

katty2010

Yes but was told i probably wouldnt need it? The house is only 52k.
They said a home buyers would look further into it (We are 100% certain there's nothing wrong with the house).
A basic valuation just tells the lender if its worth what i'm paying? is that right?

i'm really confused. would really appreciate if someone could lay out which term i.e. "basic valuation", "home buyers", "suveyor" means what.

amnblog

Basic - Just for the lenders purpose - no report to you.


Homebuyers - full written report to you on the condition of the property - and comeback via surveyor if later a problem
[RECOMMENDED]


Building Survey - Very in depth report normally only requested on large, old, or complex property, listed properties, and those in disrepair.

stator

You would be surprised how many issues they can spot on a proper Survey that you or I wouldn't.

Unless the house is covered by a new build warranty I would definitely get at least a Home Buyer's report done.

katty2010

Thanks everyone for your advice, is this done via the lender when the valuator goes in? so i'd just have to tell my broker i want a home buyers report rather than just the basic, and they'd sort it, right? Also, how much extra is it? not asking for definite figures just estimate

stator

If you want a Home Buyer's report you can pay the mortgage company extra, they usually cost about £400 whereas a valuation is usually about £200, so £200 extra. The mortgage co. will see the report and may require extra work or inspections based on anything that shows in the report (or they could refuse altogether). So yes get in contact with your broker.
Or you can organise one yourself and let the mortgage company do their valuation separately. This would cost more, ie £200 valuation + £400 home buyer's but this would ensure that you can chose who you want to do it and that they answer to you and always act in your interests. It also means you don't have to share the detials of the home buyer's report with the mortgage company, there might be some issue that is highlighted that you aren't bothered about.
If you want a full structural survey you will probably have to organise it yourself and still pay for the mortgage valuation

amnblog

The smart move is to let the lender value for mortgage purposes and confirm they are happy (and the purchase is moving forward) - then pay for a Homebuyers Report once you are confident things can progress.


If you pay for a Homebuyers Report upfront and the Lender does not like the property, or the deal falls through you have lost double your money (Std val cost v HBR cost).

Madbags

Also worth asking your solicitor as they don't have only your best interests in mind but the lenders as well. As they will be the one gathering all the reports on the property they may well spot something that could indicate a potential need for a survey.